Terms and conditions

Blue Car Rental - Blikavellir 3 - 225 Keflavik Airport. 
Tel 00354 773-7070

A full drivers license must have been held for at least 12 months and must be presented at the start of the rental. Renter must be 20 years of age to rent a vehicle at Blue Car Rental. To rent a large size SUV or a passenger car the renter must be 23 years of age.

All rentals are subject to the full rental agreement terms and conditions at the time of rental. A credit card imprint will be taken at the start of all rentals for security reasons, even when a voucher covers the cost of the rental. This credit card imprint may be used to pay all extra charges as extra insurance, parking fines, damages or any cost due to the rented car as a result of the renters use of the car.

The minimum rental period at Blue Car Rental is two days - 48 hours. When the drop off is one hour or more after the pick up time, it is regarded as a full day.

For customers in the Reykjavik area which are staying at hotels, guest-houses or other accommodations, we offer pick-ups and drop offs to our rental location, at a reasonable additional charge. For our customers arriving or departing at Keflavik International Airport we offer a free shuttle service for both pick up and drop off. Please look for the Car Rental Shuttle Service sign and our logo when you enter the arrivals hall. 

PICK-UP & DROP-OFF location:
Our pick up and drop locations are, Our Office, Keflavik Int. Airport, Keflavik City area and Reykjavik City area. Please contact us via e-mail or phone in tel. 00354 773-7070 for other locations enquires.
Taking the car outside of the country is forbidden

We reserve the right to substitute vehicles when the reserved car types is not available. We can not always guarantee the brand but we can guarantee a similar car or an upgrade instead. 

The rental car will normally have a full tank of fuel. The car should be returned full or a charge will be made for having the tank refilled even if it is missing just some liters.In case the fuel tank is not full at the time of the rental, the car should be returned with the same amount of gas in it. If the car is returned with less gas then when it was rented, we will charge the cost for the missing gas plus an additional ISK 2.000

Local value added tax (VAT) is 24%

In Iceland it is mandatory for young children to travel in safety seats while in a vehicle. Child seats are available if pre-ordered at a reasonable additional charge. These child seats are generally suitable for children aged from 6 months to +4 years of age. Booster seats are free of charge at Blue Car Rental. 

In order to guarantee your reservation we require a valid credit card number and we charge your credit card at the time of your booking.

In case of a cancellation, this is our policy;

Cancel more than one week prior to the rental and get a full refund (100%).
Cancel in the last week before your rental and pay 10% of the rental amount.
In case of a no-show or last day cancellation we charge 100% of the rental amount. 


Early returns are always allowed. However no refunds can be given for unused, or partly used car hire vouchers unless the amendments or cancellations have been made prior to the pick-up date. 


Third part liability is equivalent to the amount stipulated by Icelandic law at each time. This also applies to the amount of individual driver liability. Third party coverage and personal accident insurance is automatically included in your rental and in the self-risk liability amount mentioned here below. If for some reason, the renter causes damages to a third party vehicle, without causing damages to the rented vehicle, the third party liability is a total of ISK 35.000.

We at Blue Car Rental, include the Super Collision damage waiver (SCDW) along with the Collision damage waiver (CDW) in our prices. A renter which only has the CDW is liable for damages amounting up to ISK 350.000 but since the SCDW is included, the maximum self risk amount is ISK 90.000 for all 2wd cars and ISK 120.000 for all 4wd cars and larger passenger cars. We offer our customers this to provide them with more security when travelling and a more enjoyable experience.

The following damages are however always on the renters responsibility and are not covered by the CDW or the SCDW;

-              Negligence

-              Damages caused by driving into waters and rivers and when driving off-road.

-              Driving while intoxicated

-              Damage to tires, headlights, wind-screen and the underside of the car.

-              Damage caused by the wind blowing up the door.

-              Damage caused by sand and ash storm. (only applies if the renter has not opted for the SAAP insurance).

 (Please see full details listed on the backside of rental agreement). 

This protection includes damage to windscreen, headlights, front bumper, mirrors and the hood of the car when gravel or rocks gets thrown onto the vehicle by another car. The gravel protection (GP) is included. Self risk amount for broken windscreen is ISK 15.000. 

TP covers theft of rental vehicle. (included)


This is our new optional insurance which we offer and is the only insurance not included in the price.

For our customers protection we have decided to offer an insurance which covers our customers against damage due to sand and ash storm which damages the paint of the car, windows, lights and plastic. These damages can cost between 500.000 to 1.500.000 ISK to fix.

By purchasing SAAP the self risk in case of damage from sand and ash is lowered to 90.000 ISK. We offer the SAAP for only 1.500 ISK per day.

Volcano eruptions in the past years have increased the risk of damage to the paint and windows of all cars and no insurance company will cover these damages. In high winds and dry weather the ash from the volcanos and sand in the south coast can cause huge damage to the cars and all the cost has fallen on the renter, until now. (NOT included)

Liability Waiver

The Liability Waiver reduces the self-risk/deductible amount for any damage covered by our insurances to zero. This includes CDW/SCDW, GP, TP and SAAP and is subjected to the terms and conditions of the Rental Agreement. Exluded are any damages not covered by insurances as stated in Article 29 and 32  in the Rental Agreement and terms and onditions.

Keep in mind that this is not an extra insurance but an option for our renters to waive their liability in case of any damages to the rental car during the rental time. This allows our renters to have a carefree experience with Blue Car Rental while enjoying our beautiful island.


Call 112.
Break down service 24 hours call 00354 773-7070


Extra driver

Baby seat

Cushion/Booster seat


Fuel Can

Service Fee

This fee does not apply when the damages incurred are not caused by the renter.

There is a handling fee of 4.500 ISK for all fines or charges that result from renters use of the car and the renter does not pay himself. Blue Car Rental will charge the renter for fines and charges plus the previously mentioned handling fee.

If the car is returned extra dirty there is a cleaning fee of ISK 15.000. This is in case of an extremely dirty car, specially on the inside. Not from regualar use of the car.

Smoking is strictly forbidden in the car. If someone smokes inside the car , the renter will be liable for a cleaning fee and fine of ISK 45.000

If the car is damaged and needs to be picked up, the retrieval fee is a total of ISK 250 per km outside of the capital area or a minimum of ISK 35.000. 

Please find our price list for damaged tires, missing fuel and missing or damaged accessories.

Map of Iceland and Reykjavik are free at rental location.